Abstract: How to improve innovation performance so as to enhance regional technology innovation capability, discover and overcome the obstacles faced by innovation, and establish and foster innovation environment and atmosphere are not only the challenges for managers, but also a problem that academics should keep sustained attention on and put efforts to solve. The pharmaceutical industry, whose status in the national economy continues to rise, is one of the fastest growing industries in our country. Based on the real questions to be studied, the measurement of the model and research hypotheses were proposed based on a review of relevant theoretical analysis, and social and cultural environment, the level of information, comprehensive quality of the labor, the support of government, financial environment were extracted out of the innovation environment to analyze the impact on the innovation performance. Chinese pharmaceutical manufacturing was taken as the object of the empirical study. First of all, the data collected was descriptive in statistical analysis way; secondly, the panel data model was established according to the important indicator on the selected variables; finally, several conclusions were drawn through the empirical analysis and thus targeted recommendations were put forward as the reference for improving innovation performance of China's pharmaceutical manufacturing industry.